You guys are the people on the bottom of the picture…the ones bearing the burden of this entire government mess.
Unbelievable what happened today.
I want everyone out there to know…if you did the right thing…if you did the responsible thing…the government has just screwed you yet again. Sometimes I feel like there is a government committee whose sole purpose is to find new and inventive ways to screw the American people.
Fannie Mae has announced a new program, as of today, called “Deed for Lease.” Are you guys ready for this? I can’t believe it…I’m stunned. The stupidity of the government has now reached a monumental level. I’m embarrassed to be associated with them, in any way.
Under this new program, any deadbeat sitting in a house going through foreclosure can now surrender the deed to Fannie Mae and they will rent the property back to them for a year.
Imagine all of those irresponsible people who bought dream homes they couldn’t afford, with loans that allowed them to pay ridiculously low monthly payments – payments below even the rental value of the property, then they extracted money from the appreciation and bought new cars, flat screens, took vacations and lived well above their means for a couple years, lived the life, lived the dream.
But then the bill came due as their house devalued and the mortgage rates reset and they couldn’t make their payments, so the house went into foreclosure. That process takes a year, so while they wait for eviction…a whole year…they get to live in their dream home for FREE. While we suckers pay our rent or mortgage. It was bad enough that they could walk away from the house after having spent hundreds of thousands of dollars living it up for a few years with only a ding on their credit report…but now…
…the government is saying, send us your deed and we will rent the property to you at local market rent prices. So they get to live in their dream house ANOTHER year and pay no more than it’s rental value. Not only that, but now as a renter…they pay no property taxes! And when the year is up, they can go month to month! How is that FAIR?
To add insult, let me also mention that this would potentially make the U.S. Government the largest landlord in the country. And guess what landlords have to do? They have to maintain their properties, which means all of us are now on the hook to PAY for the maintenance and upkeep of these homes while these fools live in them.
While they were partying it up and buying everything they ever wanted and traveling the world we were saving and working hard and being responsible. Ever since this recession started, this government has consistently and without mercy rewarded everyone who was reckless and irresponsible and maliciously castigated anyone with a shred of responsibility. What a horrible government to treat its citizenry in such a way.
And what about moral hazard? There are people out there in homes they can barely afford…where is the incentive to continue making those payments? The government is incentivizing people to stop paying their mortgage!
Lastly…Fannie Mae already owns 60,000 homes that they REFUSE to sell. 600,000 Americans in 2008 walked away from their mortgages. The volume of shadow inventory out there is staggering. The banks, Fannie Mae, Freddie Mac…they are all keeping that inventory off the market to prevent the price correction to housing that is so desperately needed. This is just one more smoke and mirrors mirage gimmick the government is perpetrating on the American people to cover up for its horrendous monetary policy decisions that have led to the greatest economic recession since the 1930’s, a precipitous drop in our standard of living and the destruction of the dollar.
Categories: Housing Market